Kosovo Transmission System DevelopmentAchievements and Challenges

Content

• KOSTT Role in the Power System of Kosovo

• KOSTT main infrastructure , system data and capacities

• Objectives of Transmission infrastructure investments

• Main Transmission Investment Projects implemented 2007-2017

• 5 Year investment development Plan 2018-2023

• Integration of 450 MW TPP “Kosova e Re” and RES into the Transmission system

• Technical operational affair related to Albanian- Kosovar Market Coupling

• Technical benefits from joint operation of Kosovo and Albanian Power Systems

• Connection agreement KOSTT-ENTSOE

KOSTT Role in the Power System of Kosovo

KOSTT J.S.C is a public company, the shareholder of which is the Republic of Kosovo, through the Ministry of Economic Development

The Transmission System Operator manages operation, maintenance and development the electricity transmission system in the HV levels of network 400kV, 220kV and 110kV.

KOSTT performs:

Real Time Operation

Observability of neighboring transmission grids

Short (Day Ahead),Medium and Long term Planning\Analysis

Provide Transmission service under regulated tariff

Provide non-discriminatory open access to the grid

Enhance reliability and balancing the system

Planning, development and maintenance of network responsibility

Transmission delivery service

Facilitate and operate the Market

Kosovo Transmission system interconnected with regional network

4

450MW

200MW

450MW

Rahoveci

123

Theranda

Deçani

Peja 2

Peja 1

Burimi

PEJA 3Skenderaj

Gjakova1

2

Klina Feronikeli

DRENAS 1

Podujeva

Vushtrri

21

Trepça

VallaqiHC Ujmani

TC B

Palaj

PRISHTINA

1

23

4

5

A

KOS B

PRIZREN

FERIZAJ 2

Ferizaj 1

Sharr

Viti

Gjilan 5

Berivojce

Lipjan

Sistemi Transmetues i Republikës së Kosovës 2017

Linja 400 kV

Linja 220 kV

Linja 110 kV

HC

TC

NS 400/220 kV

NS 400/110 kV

NS 220/110 kV

NS 220/35/10 kVNS 110/35/10 kV

NS 110/35 kV

NS 110/10 kV

Legjenda

AL

ME

RS

MK

Tirana 2Fierza

Shkupi 5

Bujanovc

Nish 2

Krushevc

Ribarevina

N.Pazar

HC Kelkos

KS

2017

HV Lines in

KOSTTLine length km

400 kV 279.7

220 kV 231.8

110 kV 841.8

Total line length =1353.4 km

KOSTT main infrastructure and system data (actual)

Autotransformers 3750 MVA

Transformers 2080 MVA

Main HV Substations 6

Load Substations 28

Transmission lines

Power Transformers and SS

Peak demand last three years

Y-2015 Y-2016 Y-2017

1129 MW 1160 MW 1161 MW

Electricity demand

Y-2015 Y-2016 Y-2017

5663 GWh 5426 GWh 5781 GWh

Increase tendency

Transmission vertical and horizontal network capacities (actual)

Internal network (vertical) capacities Y-2017

• For N security criterion the network capacity is 1700 MW• For N-1 security criterion the network capacity is 1160 MW• Security margin is C(N) –Peak= 1700-1161= 539 MW

930

15501700

1072 1129 1161

0

200

400

600

800

1000

1200

1400

1600

1800

2008 2015 2017

N- Capacity

Peak

MW

Security margin

Interconnection capacities Y-2017

Interconnection lines

of KOSTT

Voltage NTC

Kosovo-Serbia

SS Kosova B- SS Nis 2

NS Podujeva – NS Krushevc

400 kV

220 kV

600 MW

Kosovo - Macedonia

NS Ferizaj 2- NS Shkupi 5 400 kV400 MW

Kosovo - Montenegro

NS Peja 3 – NS Ribarevina 400 kV400 MW

Kosovo Albania

NS Kosova B – NS Tirana 2

NS Prizreni 2 – NS Fierza

400 kV

220 kV

600 MW

1500 MW Simultaneous export capacities

1400 MW Simultaneous import capacities

High ratio : Capacity/Peak= 1.29System Adequacy =

Objectives of Transmission infrastructure investments

• Enable security and quality of supply as far as transmission capacity concerned

• Reduction of power losses

• Reduction of Energy not Supplied

• Fully complaint with GRID CODE and ENTSO-E requirements

• Support for connection of 450 MW new TPP “Kosova e Re”

• Support for Renewable Energy Integration in Transmission System

• Support for economic development of the country

• Support for market development and regional integrations of KOSTT

• Ensure stable transit flows through KOSTT network for regional power systems needs

Main Transmission Investment Projects implemented 2007-2017

Reinforcement category:

- 2 400/110 kV substations,

- Interconnection line 400kV Kosovo –Albania together with LFC project

- 12 new 110 kV lines and re-conductor (increase of capacities)

- 5 autotransformers and 21 power transformers

Load support category

- 7 110/35/10 kV Substations

Refurbishment Category

- 90% of existing Substations are renewed ( modern equipment's)

System Support Category

- New SCADA/EMS system

- Modern telecommunication infrastructure

- New measurement systems at interconnection and with other connected

parties

- 100% new relay protection systems

8

56 projects • 2- 2007• 2- 2008• 6- 2009• 6- 2010• 4- 2011• 8- 2012• 4- 2013• 2- 2014• 1- 2015• 11- 2016• 10- 2017

Total investments

236 M€

5 Year investment development Plan 2018-2023

Transmission projects:

- New 110 kV Lines and reinforcements of the lines

- 6 New 110/10(20) kV substations for load support ( Regions: Mitrovica, Drenasi, Prishtina, Fushë Kosova, Malisheva, Dragashi)

- Refurbishment of 4 Substations 110/35/10 kV

- 4 new Power Transformers 40MVA

- Upgrade of Telecommunication systems, SCADA/EMS, Metering Systems and Relay Protection Systems

- Upgrade of Market IT support Systems

- Support for regional activities CAO, APEX, RSCI, ENTSO_E, SECI etc.

Total planned investments 2018-2023 60 M€

Integration of 450 MW TPP “Kosova e Re” in Transmission system

• Considering Strong interconnections of Kosovo Transmission Network and large investments in last decade, the Transmission network is able to accommodate 450 MW New TPP in the Kosovo Power System.

• The existing capacities and the system performance will ensure stable andsecure operation of 450 MW TPP. Kosovo transmission network has sufficientsecurity margin also for the N-1 security criterion, and the security margin willincrease after putting on load the 400 kV interconnection line with Albania.

• Several was perform about dynamics and transient analyses of transmissionnetwork. The studies/analyses shown that unit of 450 MW will remain stableduring any disturbances in the network.

• The 450MW failure will not increase risk of widespread grid failure.

• Common market with Albania and Implementation of Energy Strategy 2017-2026 program which includes construction of 200 MW flexible unit will ensure system power reserves to maintain the system balance in real time.

Integration of RES in the transmission system

Rahoveci

13

Theranda

Deçani

Peja 2

Peja 1

Burimi

PEJA 3Skenderaj

Gjakova1

2

Klina Feronikeli

DRENAS 1

Podujeva

Vushtrri

21

Trepça

VallaqiHC Ujmani

TC B+RePalaj

PRISHTINA

1

23

4

5

A

KOS B

PRIZREN

FERIZAJ 2

Ferizaj 1

Sharr

Viti

Gjilan 5

Berivojce

Lipjan

Sistemi Transmetues i Republikës së Kosovës 2023

Linja 400 kV

Linja 220 kV

Linja 110 kV

HC

TC

NS 400/220 kV

NS 400/110 kV

NS 220/110 kV

NS 220/35/10 kVNS 110/35/10 kV

NS 110/35 kV

NS 110/10 kV

Legjenda

AL

ME

RS

MK

Tirana 2Fierza

Shkupi 5

Bujanovc

Nish 2

Krushevc

Ribarevina

N.Pazar

HC Kelkos

KS

Dragashi

Drenasi 2

D

F.Kosova

Ilirida

Malisheva

WP Selac

7

Kukes

WP Zatriqi

WP Kitka

WP Budakova

WP Koznica

HC Lepenci2

RES application for connection in KOSTT:• WP KITKA, 32.5 MW (under

construction/2018 in operation)• WP SELACI 105 MW (in process/

Connection agreement)• WP Koznica 34.5 MW (in process/

Connection agreement)• WP Budakova 46 MW in

process/connection offer)• WP Zatriqi 64.8 MW in

process/connection offer• WP Kamenica 1 and 2, 76.8

MW(In process/connection offer)• HPP Lepenci 10 MW/ under

construction)• SOLAR PARK 9 MW “Bejta

Commerce” (process/connection offer)

Support factors for RES Integration

• Reliable and secured transmission network

• Priority in dispatching

• KOSTT manages RES Found through Market Operator

• Feeding Tariffs (for 150 MW wind, 240MW HPP, 14 MW Biomass, 10 MW Solar - 12 years)

• Market integration with Albania and next step integration in regional market

Constrains factors for RES Integration:

• Lack of power reserves,

• Inflexible TPP units and age and technical condition of existing TPP

• no energy storage facilities or flexible units such a pump storage units

Connection application up to the date:

- Wind = 360 MW,

- Solar= 9 MW,

- HPP=10 MW

12

Integration of RES in the transmission system

Technical operational affair related to Albanian- Kosovar Market Coupling

Prishtine 2018

14

Market Opening- Law obligation (2016)

Deregulation of Wholesale market

Retail market deregulation in phases

Generators to offer their capacities in open market to all market participants

MO will manage RES found and will pay RES generators

Market based purchase of Grid Loses

Organization of Day Ahead market

Based on law obligation ERO issued Guidelines for market opening staring from 1st of April 2017

15

Balancing mechanism (BM)

Operates as a contract between TSO and Trading Parties for delivery of

power (not energy)

• Payment is for energy delivered with that power.

From 1st October 2016- 31st May 2017 was implemented as dry run

with no financial impact.

From 1st June 2017 BM is in real operation

There are lack of national balancing reserves

Procedures for cross border procurement of services are developed .

RES Energy Found

From 1st Jun 2017 KOSTT MO manages RES energy Found

RES Generator Sells to MO their production regulated incentive price (feed-in tariff)

MO Sells to Suppliers proportionally to their demand with referent market price.

MO charges Supplier to cover price difference RES tariff

RES generator are charged for 25% of imbalances for both direction (being long or short)

RES generator nominates their production at D-1. they have the right to re nominate every three hours in advance

16

Grid Losses

From 1st April 2017 Transmission and distribution Grid losses are purchased at deregulated price in the open market

Part of grid losses are purchased from KEK generation with contracted Price

KOSTT signed with cross border traders who are operating in Kosovo market the framework contract for purchasing grid losses

From 1st September 2017 KOSTT is organizing auction on D-1 for purchasing part of losses not covered by KEK generation

17

Establishment Common Market KS-AL

As first step common Power exchange with Albania

KOSTT will be shareholder of ALPX

Expected to joint on 2019

Adaptation of regulation and Market design and market is needed

Stepwise volume of energy will be traded through ALPX

Business plan and decision are in process recently for approval

18

Common Electricity Market

Common market of Kosovo and Albania in line with EU target model – objective of Energy community

a single bidding zone in all markets’ timeframes interconnections KS-AL will be considered as internal lines

No capacity booking or scheduling requirement

would be coupled with other zones on the day ahead and intraday markets

cross-border capacities with other zones would be allocated in line with the Forward Network Code

The generation mix would allow generators to optimize their generation portfolio

will link a hydro-based system of Albania with a lignite-based system of Kosovo

19

Critical milestones of Market Coupling

• Legislation– Outline changes to national laws covering establishment of a

regulatory committee and recognition of licenses issued by either ERO or ERE

– Implementation of national law changes

• Regulators and licensing– Establishment of the Common Market Regulatory Committee– Development of the SO and MO licenses– Development of Price Control framework for SO and MO– Establishment of Market Rules Modification Committee– Development of procedure for allocation of congestion costs

• Transmission and communication infrastructure– Operating of new 400 kV interconnection line Kosovo – Albania– List of needed internal network reinforcements, especially in

Albania

20

Critical milestones of Market Coupling

• Market model

– Development of high level market design for Common Market

– Development of market rules for Common Market

– Establishment of communication and billing procedures between the SO and the MO for operation of a balancing mechanism and for charging for ancillary services andother commercial payments

– Establishment of procedures for trading participant registration (plus registration ofservice providers such as distribution network operators)

– Establishment of Metering Administration Agents in Kosovo and Albania

– Establish procedures for registration of customer transfers between supplier licensees

• System operation

– Commissioning of new fiber optic data link and data exchange protocols

– Setting up common dispatching center and eventual regional network control centers

– Adoption of common system operation responsibilities, including power systemcontrol, maintenance, construction and development

– Transition from two separate systems operation and control to common, single systemoperation and control mechanism

21

Technical benefits from joint operation of Kosovo and Albanian Power Systems

• Power System optimisation ( utilisation of base power from TPP and flexible power from HPP)

• Reduction of system power reserves and their costs

• Improvements of generation and system adequacy

• Improvements of security of supply

• Support for RES integration in Power System

• Better utilisation of new interconnection 400 kV and 110 kV ( Connection to SS Kuksi)

Impact of Joint operation Kosovo and Albania (CB KS+AL) on system power reserves

• The integration of Kosovo-Albania market enables proportional reduction of regulatory reserves for both systems.

• If two systems are integrated, i.e. if two CA( Control Areas) create a Control Block, then the needs for tertiary reserve remains the largest unit in the block.

• Replacement reserve or so called tertiary reserve will be reduced proportionally for each CA in relation with largest unit operating I CB

Connection agreement KOSTT-ENTSOE

KOSTT signed CA with ENTSO-E in good faith being aware that condition on Elektrosever licensing is beyond KOSTT’s mandate

For one year this condition has blocked KOSTT to start operation as control area/block

Non implementation of CA/CB disables KOSTT to:

Fulfil commitments of WB6 MoU by Kosovo for regional market integration & balancing

Utilize 400kV line and LFC project

Joint establishment of PX Kosovo Albania

Receiving services from SEE CAO and RSC

Market signals for investment

24

Revenue from Congestion management /Capacity allocation collected by EMS from KOSTT interconnectors

25

450MW

200MW

450MW

Revenue from Congestion management /Capacity allocation collected by EMS for KOSTT interconnectors

Year Revenue( mil€) (AL-MN-MK)

2008 1.2122009 4.1842010 3.8732011 2.8832012 5.8922013 6.7082014 9.8132015 4.4732016 2.759

2017 (Jan-Sept) 9.70Total 50.285

450MW

New 400 kV line with regional importance out of operation since June 2016

Thank You!

Transmission System and Market Operator

KOSTT J.S.C

Iljaz Kodra St. n.n

10 000 Prishtina, Kosovo

Ph: +381(0) 38 501 601 5

Fax:+381(0)38 500 201

email: info@kostt.com

Web: www.kostt.com